Sonic 2003 Annual Report Download - page 47

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p.45
Notes to Consolidated Financial Statements
August 31, 2003, 2002 and 2001 (In thousands, except per share data)
16. Selected Quarterly Financial Data (Unaudited)
First Quarter Second Quarter Third Quarter Fourth Quarter Full Year
2003 2002 2003 2002 2003 2002 2003 2002 2003 2002
Income statement data:
Company-owned
restaurant sales $ 81,574 $ 71,721 $ 74,828 $ 67,355 $ 102,214 $ 92,280 $112,902 $ 99,351 $ 371,518 $330,707
Other 17,011 15,608 15,524 14,221 20,391 19,011 22,196 20,615 75,122 69,455
Total revenues 98,585 87,329 90,352 81,576 122,605 111,291 135,098 119,966 446,640 400,162
Company-owned
restaurants
operating expenses 62,298 54,022 58,511 51,835 73,336 64,972 83,221 71,364 277,366 242,193
Selling, general and
administrative 8,222 7,658 8,418 7,786 9,483 8,729 9,303 9,271 35,426 33,444
Other 9,548 8,853 9,111 9,119 12,581 12,321 13,108 11,910 44,348 42,203
Total expenses 80,068 70,533 76,040 68,740 95,400 86,022 105,632 92,545 357,140 317,840
Income from operations
1
8,517 16,796 14,312 12,836 27,205 25,269 29,466 27,421 89,500 82,322
Interest expense, net 1,559 1,569 1,600 1,517 1,441 1,536 1,616 1,697 6,216 6,319
Income before
income taxes 16,958 15,227 12,712 11,319 25,764 23,733 27,850 25,724 83,284 76,003
Provision for
income taxes 6,317 5,672 4,735 4,216 9,597 8,841 10,374 9,582 31,023 28,311
Net income $ 10,641 $ 9,555 $ 7,977 $ 7,103 $ 16,167 $ 14,892 $ 17,476 $ 16,142 $ 52,261 $ 47,692
Net income per share:
Basic $ .27 $ .24 $ .21 $.18$ .41 $ .37 $ .45 $ .40 $ 1.34 $1.19
Diluted $ .26 $ .23 $ .20 $.17$ .40 $ .35 $.4
3
$ .38 $ 1.29 $1.13
Weighted average
shares outstanding:
Basic 39,216 39,990 38,689 40,022 38,833 40,298 39,169 40,312 38,977 40,156
Diluted 40,971 41,920 40,296 42,126 40,531 42,430 40,627 42,351
4
0,606 42,207
17. Fair Values of Financial Instruments
The following discussion of fair values is not indicative of the overall fair value of the company’s consolidated balance
sheet since the provisions of SFAS No. 107, “Disclosures About Fair Value of Financial Instruments,” do not apply to all
assets, including intangibles.
The following methods and assumptions were used by the company in estimating its fair values of financial
instruments:
Cash and cash equivalents – Carrying value approximates fair value due to the short duration to maturity.
Notes receivable – For variable-rate loans with no significant change in credit risk since the loan origination, fair values
approximate carrying amounts. Fair values for fixed-rate loans are estimated using discounted cash flow analysis, using
interest rates which would currently be offered for loans with similar terms to borrowers of similar credit quality and/or
the same remaining maturities.
As of August 31, 2003 and 2002, carrying values approximate their estimated fair values.
Borrowed funds – Fair values for fixed-rate borrowings are estimated using a discounted cash flow analysis that applies
interest rates currently being offered on borrowings of similar amounts and terms to those currently outstanding.
Carrying values for variable-rate borrowings approximate their fair values.
The carrying amounts, including accrued interest, and estimated fair values of the company’s fixed-rate borrowings at
August 31, 2003 were $60,959 and $63,803, respectively, and at August 31, 2002 were $81,513 and $85,697,
respectively.